Friday, February 7, 2014

Record Number of Americans Renounce US Citizenship


2,999 renounced their US citizenship in 2013, most to avoid paying US taxes. This tops the 2011 high of 1,781



WSJ reports:
This year will set a record for expatriations by U.S. taxpayers, with at least a 33% increase from the previous high in 2011.

The Treasury Department published the names of 560 people who either were U.S. citizens renouncing their citizenship or long-term residents who turned in their green cards during the third quarter.

That brings the total so far this year to 2,369, according to Andrew Mitchel, a tax lawyer in Centerbrook, Conn., who tracks the data. For all of 2011, the number of published expatriates was 1,781, he said.
[…]
Taxpayers who expatriate aren’t required to give a reason, but experts said the overall increase was likely because of tougher enforcement of U.S. tax laws.

“Nothing has changed in immigration law that would make people want to renounce,” said Freddi Weintraub, an immigration specialist and partner at Fragomen Worldwide, a New York-based law firm. “Current or anticipated changes in tax law and enforcement are driving this increase.”

8 comments:

  1. Pretty hard to have higher after tax income by giving up your citizenship.

    A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States must file a US tax return. So it's not enough to simply give up your citizenship and move abroad. You have to give up all income generated in the US.

    Taxation of Nonresident Aliens
    http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens

    You also have to pay an exit tax (get a sailing permit) before leaving if you are wroth more than 2 million or have paid an average of 155K/year for the past 5 years.

    Departing Alien Clearance (Sailing Permit)
    http://www.irs.gov/Individuals/International-Taxpayers/Departing-Alien-Clearance-%28Sailing-Permit%29

    ReplyDelete
    Replies
    1. Jerry,

      You don't understand the difference between freedom and serfdom. All income of US citizens is taxed by the US Govt, no matter whether the person's source of income is completely foreign and the person has spent the entire year outside the country. If you are a US taxpayer, everything you earn is owned by the US Govt, which wants its cut. US people with foreign domiciled businesses have to deal with two tax authorities, IRS^2, even if they don't use *any* of the 'services' provided by the US Govt during the course of their business. Besides, US people are generally despised overseas by financial institutions, so that's something to consider as well.

      It's funny you mention NonResident Aliens - have you ever heard about "taxation without representation"? That's a perfect example of it for you. Aliens cannot vote, and must pay ridiculously high taxes, and at the same time, the US Govt and IRS demand to know the precise details about all sorts of wealth held in the home country. Sending money home is called money laundering, etc.

      It's very hard to give up US citizenship, unless you can pay your way out, or are willing to start from scratch. And yet, more and more people are doing it. Should give you something to ponder, Jerry.

      The time to slaughter the masses upon the altar of benevolent Govt is coming nearer every day. Capital controls, wealth confiscation, currency devaluation, extreme regulations, frivolous terrorism charges, censorship - the whole kitchen sink is headed the way of US taxpayers. Those who are heading for the exits now are the smart ones.

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    2. Anon @107pm

      Great reply. The VERY wealthy are moving cash out of the US. I could point to dozens of articles alluding, or outright saying it (while outside the US) and worrying about the banks, the society and The Government!

      Delete
  2. These are not people who are giving up their business in Anytown USA. These are expats who feel trampled on by their government--the only government in the world who taxes citizens no matter where they earn their income--when they have to pay taxes to two different governments. Not to mention, it restrains our--American expats--ability to maintain social competitiveness with all other humans who aren't taxed by two governments just because of their place of birth or blood.

    Who knew that an American passport was actually a deed to the fruits of your labor, irrespective of where you decide to produce.

    Imperialism of the body.

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  3. Sorry Jerry, market laws trump political laws

    ReplyDelete
    Replies
    1. He's trolling but many idiots do actually believe the stupidity he spouts.

      Delete
  4. Truth is, pretty much all Americans have renounced citizenship, we're just stuck here...

    ReplyDelete